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February 26, 2019

Wabtec completes $11bn merger with GE Transportation

Wabtec has completed its $11bn merger deal with GE Transportation, a former business unit of GE, to become a major player in rail equipment, transportation and associated services.

Wabtec has completed its $11bn merger deal with GE Transportation to become a major player in rail equipment, transportation and associated services.

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The merger combines Wabtec’s freight, locomotive, transit vehicle manufacturing and electronics products portfolio with GE Transportation’s solutions for various industry verticals.

Wabtec president and CEO Raymond T Betler said: “This is a once-in-a-lifetime opportunity to bring together nearly four centuries of collective experience to create a technologically advanced leader with a highly complementary set of capabilities to move and improve the world.

“Our teams have made significant progress in integration planning, and this process has only strengthened our confidence in the value creation potential of the combination.”

“Our teams have made significant progress in integration planning, and this process has only strengthened our confidence in the value creation potential of the combination.”

In May last year, both companies entered into a merger agreement to combine their businesses.

Wabtec shareholders own around 50.8% of the combined firm, while GE shareholders hold 24.3% on a fully diluted basis. GE owns the remaining 24.9% economic interest in the merged Wabtec company.

GE also received around $2.9bn in cash at closing.

The combined firm is expected to generate revenues of more than $8bn this year as one of the leading equipment, aftermarket services and digital solutions providers in the transportation sector.

Additionally, the Wabtec-GE Transportation merger will help to accelerate the delivery of automation solutions to the rail industry by combining the expertise of the two companies. The combined company will also have a stronger skilled technician workforce and expanded number of repair facilities.

Last month, the US Department of Justice (DOJ) closed its review on the merger deal.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

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